Holiday giving can help communities, but scammers may exploit generosity with copied charity names, emotional stories, fake crowdfunding pages, or urgent requests after a disaster. Before donating, take a moment to verify who will receive the money and how it will be used.
Pause when a fundraiser creates urgency
Be cautious if someone pressures you to donate immediately, refuses to explain the organization, or claims that only cash, wire transfer, cryptocurrency, or a gift card will work. A legitimate cause should allow you time to check its identity and payment process. Do not assume a familiar logo or a sponsored social post proves a fundraiser is authentic.
Verify the organization independently
- Search for the charity’s exact legal name and check spelling carefully.
- Visit the organization’s official website by typing the address yourself.
- Use the IRS Tax Exempt Organization Search to check federal tax-exempt status when relevant.
- Compare the phone number and mailing address on the fundraiser with the organization’s official contact information.
- For local charities, look for relevant state charity-registration information and independent reporting.
Choose a safer payment method
Donate through the charity’s verified website or a trusted payment processor. Keep the receipt and confirmation email. If a fundraiser is on a crowdfunding platform, check who created it, who receives the funds, what happens if the goal is not met, and whether the platform verifies organizers. A crowdfunding campaign is not automatically a tax-deductible donation.
Understand tax deductibility
Not every organization or contribution qualifies for a federal charitable deduction. Eligibility depends on the recipient, the type of contribution, and your tax circumstances. Check the IRS listing and keep records; consult current IRS guidance or a qualified tax professional for your situation. Never rely solely on a fundraiser’s claim that every payment is deductible.
If you already donated to a suspicious appeal
Contact your bank or payment provider promptly if you suspect fraud. Save messages, receipts, URLs, and transaction details. Report deceptive fundraising to the FTC and, where relevant, your state charity regulator. Be wary of follow-up messages claiming they can recover your donation for an upfront fee.
Sources: FTC charity-giving advice · IRS charities guidance. Photo: Joel Muniz/Unsplash.
